Egilsstaðir is a town in east Iceland on the banks of Lagarfljót river.

It is part of the municipality of Fljótsdalshérað, the county seat of Norður-Múlasýsla and the largest settlement of the Austurland region with, as of 2011, a population of 2,257 inhabitants.

Egilsstadir is located at 65°17′N 14°23′W / 65.283°N 14.383°W / 65.283; -14.383Coordinates: 65°17′N 14°23′W / 65.283°N 14.383°W / 65.283; -14.383. The town is young, even by Icelandic standards where urbanization is a fairly recent trend compared to mainland Europe. It was established in 1947 as an effort by the surrounding rural districts recognising it had become a regional service center. The town, which is named after Egilsstaðir farm, is near the bridge over Lagarfljót where all the main roads of the region meet, Route 1 as well as the main routes to the Eastfjords.

Egilsstaðir has grown to become the largest town of east Iceland and its main service, transportation and administration center. The town has an airport, college and a hospital. The town grew quickly during the economic boom in the region from 2004-2008 associated with the building of the Kárahnjúkar Hydropower Project and Alcoa's aluminium smelting plant in Reyðarfjörður. The growth has slowed markedly since the banking collapse in 2008.